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September update

Making Tax Digital, Class 2 NI Contributions & Personal Tax Account

Victoria Elvy :: Wednesday 19th September 2018 :: Latest Blog Posts

Hope you all had a lovely summer.  As I sit here writing this article I see the trees changing colour ready for autumn and note someone has kindly put out the number of days until Christmas and New Year on social media, which makes me think where has the year gone by and it is only another 134 days until 31 January 2019 when your 2017/18 tax return needs to be filed.

Making Tax Digital

Looking at the number of days until 31 January 2019 brings me to look at the number of days until Making Tax Digital (MTD) is planned to start – 1 April 2019 – only 193 days from today!  Are you ready for MTD?

Following the revised timeframe for MTD which was announced last year, the main priority it seems for HM Revenue & Customs (HMRC) has shifted to the on-time delivery of MTD for VAT.  MTD for VAT relates to the way data is submitted to HMRC each quarter, and how records are kept before the data is submitted.

Currently, the VAT return is submitted via the Government Gateway, either using appropriate software, or by typing the nine box values directly into the Gateway.

If your business, whether you are trading through a company or as a sole trader, use software for submitting VAT should notice little change in their day to day submission process – if your software provided is MTD compliant.  However, there are still several businesses who do not submit their VAT return today via software.  The major change under MTD for VAT is that this Government Gateway is being disabled for VAT periods starting on or after 1 April 2019 for businesses turning over more than the registration threshold.  If this is your business, you will need an alternative method for April i.e. MTD enabled software.

It is worth keeping an eye on HMRC list of software providers supporting MTD for VAT.

Here are some key actions to take before April 2019:

• Check your current VAT software provider is on the HMRC list of MTD providers or contact them to establish their plans.
• As the new requirements apply for periods from 1 April 2019 ensure your VAT quarter is in line with your year end.
• Chat with your accountant to ensure you are ready for MTD

If you are VAT registered but your turnover is below the VAT threshold you are also able to opt into MTD for VAT.

MTD is still on track for MTD for business (MTDfb) for April 2020.  This means quarterly reporting of trading and rental income.  I know 2020 seems a long way off but it will only be just around the corner if you go by how quickly this year has fled by!  So perhaps it would be best to start checking out the software providers on HMRC website.

Class 2 National Insurance Contributions

As you may recall, it was announced that Class 2 NIC for the self employed was going to be abolished from April 2019.  It has now been announced this is not going to be taking place.

HMRC Personal tax account

I have recently spoken to several people who still have not logged on to their personal tax account.  I would definitely have a look at your own personal tax account as you can check your national insurance contribution years; change where you would prefer for your personal allowances to go; update the income details for child tax credits or universal credits and lots more. 

How do I find your Personal Tax Account?  If you go on to HMRC website (www.hmrc.gov.uk) , scroll down to find "your personal tax account" and follow the instructions.

If you need assistance with any accountancy or tax related matters, please contact Catherine at  CBA Services Limited on 01258 840306/07895 913546/Catherine@cba-services.co.uk

Whilst care has been taken in preparing this publication it is for information only.  It is not, and should not be construed, as advice and accordingly no reliance should be placed on the information contained herein.